Revenue and certain market conditions are on a positive path
CTI Logistics has seen its annual profits plummet by nearly three-quarters as it takes debt out of its future financial equation.
The diversified transport and services firm’s $6.06 million profit followed the previous financial year’s $20.3 million effort.
This came as revenue rose 2.5 per cent from $150.6 million to $154.4 million
“The company reduced interest bearing debt by $15.5 million from the proceeds of property sales, earnings in the period and the issue of shares,” it says.
“The reduction in debt was achieved after allowing for cost of plant, equipment and motor vehicles and the consideration paid for SRH Transport.”
The Transport arm and the Logistics business had fairly even years compared with the year earlier.
Transport’s profit before tax was up nearly $4 million to $76 million, realising profit before tax up a tad more than $500,000 to $2.86 million, while Logistics revenues stayed steady at $81.1 million, with profit before tax up $800,000 to $3.8 million.
Costs were up only slightly with those for employees rising only about $700,000 to $54.9 million, though for subcontractors is was up $2.6 million to $40.7 million.
Motor vehicle and transport costs fell $2.7 million to $18 million.
With good news on every line bar the bottom one, CTI sees much to be positive about over the past financial year on the transport and logistics fronts.
These include:
- The SRH Transport acquisition boost to freight volumes and fleet utilisations that improved margins
- Subsidiary GMK Logistics’ business growth following expansion of its NSW site at Gregory Hills
- Productivity gains flowing from a maturing of of the distribution model for the group’s larges warehousing client
- More e-commerce activity for its parcel business.
SRH was bought last September for $1.73 million, $1.6 million of which was for property, plant and equipment and $230,000 for customer relationships. It came with no liabilities and no goodwill was recognised.